Commerce is in Mumbai's genes

Mumbai owes its business spirit and commercial can-do to its genes. Historically, commerce captures the essence of Mumbai in the same way that politics rules Delhi���s DNA.

After all, it was the catalyst for its transformation ��� from a near nameless island archipelago, given away as a royal dowry gift, to the centre of India���s capital and industry for more than two centuries.

Although the earliest references to the city go back seven centuries to the time of Allaudin Khilji, it acquired its current form when its Portuguese rulers gave it away as a dowry gift to Charles II of England who married Catherine Braganza.

(Incidentally, the Portuguese called it Bom Bahia or Good Bay, which English mispronunciation turned into Bombay). It was under the English the city gained both its commercial reputation and business gumption.

Till the late 19th century, the city was yet another British outpost struggling to make room for its growing population. But its fortunes transformed overnight due to two global events ��� the opium wars in China followed by the American war of Independence.

The first blocked the city���s opium exports forcing the local entrepreneurs to look for another commodity to build their fortunes on. Then in 1861, the American War of Independence put a stop to cotton exports to Britain. The British Empire turned eastwards and Bombay was the big gainer.

As cotton prices zoomed, it triggered frenzied speculation with select stocks commanding 1,000 times premium! Four years of bull run ��� which also financed some of the city���s most iconic buildings ��� later, the bust came. As Gen Robert Lee surrendered, ending the war in America, India���s cotton fortunes turned gossamer.

Overnight some of Bombay���s wealthiest citizens became paupers forcing the city to govern its broking community. That���s how the Bombay Stock Exchange was born in July 1875. Clearly, Mumbai is no stranger to global cataclysms.

For most of its nearly 150-year-old commercial history, it has prospered or been battered by global economic and political developments. It���s the secret of its resilience. Mumbai knows no other way.